>> reporting from washington, bad news. damaged by a phone hacking scandal, news international closes britain's best-selling paper after a run of 168 years. >> clearly, practices of certain individuals did not live up to the standards and quality of journalism that we believe in and that i believe in. >> medical breakthroughs. for the first time, scientists have been able to make an organ out of synthetic materials. and will we have lived off? the end of an era is almost here for the -- lift off? the end of an era is almost here for the space program, but it all depends on mother nature.

welcome to our viewers on pbs in america and around the globe. is the hacking scandal which has stunned britain, and it today came the biggest bombshell of all. britain's best-selling newspaper, the news of the world, has been shut down. it has been in print since the 1800's. the closure comes after a public outcry, but it has not lifted the spotlight from the murdoch empire which controls 40% of newspaper circulation in the u.k. and has worldwide reach. >> rupert murdoch, 1969, shortly after he bought a newspaper, "the news of the world," that was to become his very profitable pride and joy. >> 4 give the individual by all means, but you cannot forget. >> 42 years later, he might well have made the same remarks

about the person at the paper became fairly rotten and whose action shocked the nation. the paper, which has been printed for 168 years, became indelibly linked with the worst practices in journalism. james murdoch concluded it could not be amended. >> clearly, practices of certain individuals did not live up to the standards and quality of journalism that we believe in and that i believe in. and that this company believes in. this company has been a great investor in journalism, a greater investor in media in general, and it is something that we believe very strongly and. clearly, certain activities did not live up to those standards. that is a matter of great regret for me personally and for the company. >> there were revelations about alleged hijacking of a mobile phone, and of the families of

those who died in the seven- seven atrocities, and the invasion of the privacy of british soldiers killed in action. 80-year-old rupert murdoch was pursued today by journalists hours before the kind of humiliation rare for the media mogul. he was tight-lipped. >> there are some unscrupulous souls who worked here before. because of them, others have been thrown out of a job today. >> rebecca brooks, a former editor of "news of the world close "-- news of the world." some feel she should have lost her job. >> she is an executive of news international who was editor at

the time the hacking happened. it is a big acts, but i do not think it solves the real issue and news international. >> i am satisfied that rebecca -- her leadership in the business and her standard of ethics, her standard of conduct throughout her career are very good. >> with big consumer company after big consumer company pulling their advertising from quoted news of the world," the commercial future -- from "news of the world," the commercial future was looking bleak. >> it is going to be investigated. there must be a full judicial inquiry. >> here is the other newspaper jewel acquired by rupert murdoch in 1969," the sun." could there be a sunday without a murdoch tabloid? unthinkable, surely.

>> despite today's announcement, the fallout from the scandal seems to be far from over. scotland yard say they have identified 4000 possible hacking victims. an inquiry will start into possible wrongdoing by police officers. we have the latest on that part of the case. >> this famous newspaper titles may have been confined to history, but the scrutiny of its methods goes on. britain's most senior policeman has officers investigating whether other officers were bribed by journalists. >> a small group of officers may have engaged in these practices. i will determine to do what we should do, and that is proceed to criminal courts. >> a former employee told the court last year as a witness that he knew nothing about payments from the police or to the police. e-mails have been provided the

raise serious questions. >> someone from news international is misleading us. he has to answer a perjury charge, and that is very serious. >> tonight, it is reported that he will be arrested after setting himself to a police station for questioning. scotland yard says its investigation will be robust, whereas in the past, insiders say it has fallen short. one former tabloid journalist says the paper itself should have been restrained. >> rebecca should have put the brake on. if she had done nye, we would not have gotten into this mess. she -- should have put the brake on. if she hadn't done that, we would not have gotten into this mess. >> no confirmed cases have come to light, but the allegations

forced the royal british legion to pull out of its fund-raising with the news of the world. police are investigating the case of james phillips and, killed in afghanistan. according to his father, e-mail messages he received after his death had been read. he suspects, by hackers. >> they should suffer whatever punishment is appropriate. i'm sure that will happen. it is going to take time. >> rebecca brooks, picture leading news international tonight. criminal investigation, public inquiries. the scrutiny of what went on at her newspaper could continue for years. >> for more on today's news, i'm joined from london by author and journalist peter preston who was the editor of the guardian for a number of years. if i could start, could you explain to viewers around the world and here in the united

states just how big a deal this story is and the latest developments art? >> it was all about celebrities. it was difficult to get the public engaged in that. this week, when it was revealed that the telephone of the 13- year-old murder victim had been packed into and a whole variety of other car stories -- hacked into, and a whole variety of other horror stories emerged, now you have a toxic image for the paper. for those of us who are used to believing that murdoch rules the world, the world is cracking up all over the place. >> use international can afford to lose news of -- news international can afford to lose "news of the world." >> there are two questions.

as "the news of the world" gets canned -- and remember, they enabled other papers to carry- on -- that knocks a hole in the account. also, it is not like murdoch to sacrifice and newspaper. he buys newspapers, he does not can them. we will see the murdoch empire moving on. rupert is 80. his son james is not that attached to newspapers. they are troubled. they do not make as much money as they ought to. we're looking to the future, not the past. >> let's look at the government now. what impact does this have on david cameron? the man who was his communications adviser is reportedly going to be a arrested tomorrow, linked to this scandal. he is very close to the news

international executives. >> and the man in the streets as he remembers tony blair topping off to consort with rupert on the island and gordon brown constantly having his door open to visiting murdoch's and all of that. i do not think this is strictly a conservative-labor issue. there are those who believe david cameron should have had andy resign over the first allegations of hacking. he looks a bit stupid now. it does not do anything for his authority. uso voluble yesterday, saying that this is an outrage -- he was so valuable yesterday,

saying that this is an outrage and something must be done about it. >> in other news of the world, yemeni president ali abdullah saleh has appeared on state television just months after the rocket attack on his compound that nearly killed him. he has undergone eight successful operations to treat his burns. the european central bank has raised its main interest rate by one-quarter of a percent to try to keep the lid on inflation. the rate is now 1.5%. correspondents say the decision is controversial because the country is already struggling with the government debt crisis. greece, ireland and portugal will now face higher borrowing costs. when it comes to financial woes, the united states has a fair share of its sound. today, president obama met again with congressional leaders to try to hammer out a deal to

prevent america from defaulting on its own debt. he described the discussions as frank and constructive but the admitted that democrats and republicans are still very far apart. they will meet again on sunday. for more on this stuf, i am trad by a correspondent from time magazine. you have described this as a game show. >> you have president obama and john boehner as picky communicators and negotiators of this deal. -- as the key negotiators of this deal. they're trying to figure out what will give them the most political support. behind door number one, you have this package with 3 million -- with $3 trillion in cuts. behind this door you have a package with $4 trillion in cuts. i think this is a much more

politically driven deal that you because we're so close to an election. it will determine whether john boehner can keep the house or whether obama can win reelection. >> i might look at the american political scene and say, this new congress, they are messing with something far to some -- far too important to mess with. i'm going to impose constraints on them anyway. >> deutsche bank basically said something similar, that if they do not stop messing around, maybe the entire process should be overhauled and congress should not be entrusted with this very important job of raising the debt ceiling. >> is that going to convince congressional minds that we actually do need to end up with something, some sort of

compromise before the deadline? >> last week, everyone was saying what will happen if we do not raise it. now we have agreement pretty much across the board that we really do have to do this. it is just a question of how big the package will be. >> how critical is president obama to this process? >> it is make or break. if he gets it done and gets a big package, he will win reelection in a landslide. >> almost 60 years ago, doctors performed the first organ transplant. now, scientists in london and sweden have gone one step further. they have managed to perform transplants surgery without a donor. instead, the team replaced defective windpipe with the world's first synthetic organ. we have a special report. >> this is how the world's first synthetic organ was made, dipping a glass mold into a liquid polymer, which created an

exact copy of the patient's windpipe. it was created in these labs of the world free hospital in london and then flown to sweden. once in stockholm, the synthetic windpipe was bathed in a solution of stem cells taken from the patient's bone marrow. after just two days, the millions of tiny holes in its surface was seated by cells. a synthetic body part had become the patient's own. here it is in the operating theater, being cut to size moments before being transplanted. the ability to create a three- dimensional synthetic organ is a significant moment in the field of surgery. >> this technique does not rely at all on a human donation. you can have it immediately. there is no delay, and most important, since it is a regenerative approach, you do

not need [unintelligible] >> the patient knows that without the transplant he would have died. his voice is still recovering. >> [whispering] >> what next? look at this, a 1 meter long synthetic artery made in just 20 minutes. is one of many parts that scientists now say they can create at will. >> we are not just stopping there. we are moving to other parts of the body, year, knows, a skin. -- ear, nose, skin. >> the material does have limits. it cannot be used agree more

complicated organs like the heart, liver or kidney. >> just amazing. still to come, celebrations at much to be to 100 years after the mountain trek -- machu pic hu. 100 years after the mountain treasure was rediscovered, many in peru claim it was never lost. parts of africa have been devastated by a lack of water. we have been in a canyon refugee camp all week. we have this update. >> the condition of some of the malnourished children we have been following through the week has started to improve slightly. once they are given medical attention and given some milk, they do start to respond and get

a little bit stronger. there is some hope. the problem is making sure that all of the malnourished children who arrive here actually get that medical attention. one aid agency was going around the camp trying to persuade mothers that they should be coming to the hospital with their week, malnourished children. occasionally, those mothers do not want to come to the hospital because they have other children in need to look after. they need to line up for food and firewood. they think coming to the hospital with only one child would be a distraction. they're prepared to sacrifice one of their children, to let them die effectively, to help the other children. that is just one of the tragedies here in the refugee camp. we are also talking to a nurse who is working around the clock and saying how traumatic it can

be to be an aid worker here. she had a child she was cradling in her arms and a few days ago who died and she found that traumatic. aid agencies say they are overstretched. the camp is overwhelmed with refugees from somalia. there are 380,000 people here right now but that figure is rising all the time. >> tomorrow, more than half a million people are expected to gather at cape canaveral on florida's coast to watch the space shuttle atlantis lifted off for the last time. after three decades and billions of miles is the final flight for the shuttle program. right now, it is the weather that everyone has their eye on. we have this report. >> atlantis, the last of its kind, poised for the final mission. it has taken weeks of effort

night and day to get to this moment. the space shuttles have been flying for 30 years. this launch will mark the end, for a while, of america's ability to send people into orbit. the ground crews, astronauts, and nasa senior managers are having an emotional time. >> i have been at the landings of the last two orbiters. i will do the same as the orbiter lands. we have put so much into this program as a nation. there will be tears of pride and joy. >> this massive building is where they have been assembling the space shuttles, and before them, the apollo rockets, to send men to the man. maoon.ttle's -- to the

the shuttles will not be remembered the same way. they have brought this be spectacular images of the most distant reaches of the universe. the shuttle's also built the international space station, an orbiting laboratory. but there has been a heavy cost. in 1986, the challenger exploded. all seven people on board were killed, including a teacher. her parents watched in horror. she had been invited to prove that space travel was safe. in 2003, the columbia broke up and another seven people were killed. a disastrous record for a craft designed to make reaching orbit routine. >> they have come with costs, tremendous costs, but anything of this value comes with tremendous costs. the greater the value, often the greater the costs.

>> for now, all eyes are on the images from space of storms crossing the atlantic. the countdown continues. this video footage has been sped up. liftoff is one step closer if the weather allows. bbc news, florida. >> now to a marble found in the mountains of peru. it is the 15th century site shrouded in mystery. 100 years ago, it was thrust into the international spotlight when an explorer said he had rediscovered the treasure. people in peru say the site was never lost at all. >> it is one of the most stunning and iconic landmarks in the world, but for peruvians, it is much more than an archaeological site. it has become a symbol of

national identity even though its origins are still shrouded in mystery. it is unclear if it is the mythical lost city of the incas or not, but that takes nothing away from its majesty and the mystery of how and why it was built. some believe it may have been a refuge for an indian ruler. others say it was a sanctuary. that is all part of the attraction for the tourists who visit every year. as a world heritage site, it rarely disappoints. >> there is nothing similar all over the world, not only in peru. >> 100 years ago, an american historian claimed to have discovered a city high up in the andes. most experts now agree that he was not the first to rediscover it.

a peruvian explorer had been there a decade earlier. >> it was not this undiscovered world, terribly difficult and dangerous to get to, no. he was taken on a very good path by people who knew the place and told him that there was an archaeological site. >> the story of the discovery may have been romanticized, but peru is still celebrating the anniversary. the expedition made the unknown wonder of the world famous, and that changed the way peruvians looked at themselves. >> it marked a turning point in peru's vision of its native past. it did not change overnight, but it marked the beginning of a new phase of peru's modern history, where people began to look at the incan passed with different

eyes, with admiration instead of contempt. >> thousands of artifacts will go on display nearby. a century after that visit, peruvians are happy to share the place with the world, but they also claim machu pichu as their own. >> before we go, there is one more tradition we wanted to show you. today, thousands of thrill seekers took to the streets of pamplona, spain, as the annual running of the bulls took place. luckily, no one was chord in this year's race between man and beast, but -- gored in this year's race between man and beast, but i still think they're absolutely crazy to do it. thank you for watching. have a good night.

>> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> union bank has put its global financial strength to work for a wide range of companies. what can we do for you?

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